Labour Supply By A Contractor

[Asked by Guest]

If a Labour Contractor, who is unregistered or registered in GST law supplies pure labour on contract basis and is liable for TDS, then how are they treated in GST law?

Does RCM applies over here on the part of Service Receiver or not?

Please elaborate or give a link to find this query explaining both cases i.e, incase of registered or unregistered Contractor.

AI Summary

GST liability for labour supply: supplier liable under forward charge except nil rated pure construction; no reverse charge for unregistered suppliers.
Labour supplied by a contractor is taxable under GST and the contractor must register and pay tax under forward charge when turnover exceeds the threshold, except that limited nil rate exemptions apply only to specified pure labour construction works for certain housing and single residential units; supply of manpower and security services remain taxable and there is no reverse charge on recipients for purchases from unregistered suppliers. Penalties follow non registration or non compliance, and TDS under Income Tax may separately apply.